UK asset finance navigates a challenging H2 2025

Asset Finance Connect’s latest UK Asset Finance Outlook H2 2025 reveals an industry balancing strong liquidity and falling borrowing costs against weakening business confidence, tightening regulation, and rising operational pressures.

The full report — available to download now — offers an in-depth analysis of confidence levels, asset-class performance, regulation, funding conditions, and emerging technology trends shaping the UK market in the second half of the year.

Download your copy of the full report by completing the form on the right.

Key findings include:

• Confidence weakened despite positive economic indicators: Rates are falling and inflation is easing, but policy uncertainty, rising costs and fears of future taxation are delaying business investment and slowing demand.
• Corporate lending takes the lead: Both lenders and brokers expect business customers—especially corporates—to drive borrowing, as the consumer market continues to contract.
• Liquidity strong, but risk discipline under pressure: Independents and captives are growing market share as banks remain cautious, raising concerns that intense competition could lead to looser credit decisions.
• Asset class divergence widens: Technology, cybersecurity, commercial vehicles and green energy assets show the strongest growth prospects, while consumer car finance and office equipment remain subdued.
• Regulation reshapes lender–broker dynamics: The Supreme Court ruling on commission disclosure has triggered widespread adoption of preventative disclosure and rising compliance costs.
• Defaults expected to rise: Lenders and brokers report their most pessimistic insolvency outlook since 2023.
• As-a-service models gain traction: Especially in IT hardware/software and green energy systems, reflecting a shift toward opex-based finance.

The AFC UK Asset Finance Outlook H2 2025 captures a market defined by caution, selective growth opportunities and structural change – offering essential insights for navigating the months ahead.

Download the UK Asset Finance Outlook H2 2025 now by completing the form and stay ahead of the trends reshaping the UK asset finance industry.